Prepare the journal entries for twister ltd

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Reference no: EM133083300

Question: Application of revaluation model

At 1 July 2014, Twister Ltd acquired the following noncurrent assets:

Equipment $100000
Vehicles 80000

They are in difference classes of non-current assets and are to be measured at fair value. The expected useful lives of vehicles and equipment are 5 years and 10 years. respectively.

At 30 June 2015. the fair values of both assets were assessed. The equipment had a fair value of $82000. and the vehicles. 570000. The remaining useful lives were assessed to be 8 years for equipment and 7 years for vehicles.

At 30 June 2016, the fair value of equipment was assessed to be 581 750 and the fair value of vehicles was 555000.

Required
Prepare the journal entries for twister Ltd for the years ending 30 June 2015 and 2016.

Reference no: EM133083300

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